Business segment result

In the Institutional Clients segment of the LLB Group the business volume rose in 2013 by 0.7 percent to CHF 25.6 billion (31.12.2012: CHF 25.4 billion). The closure of LLB (Switzerland) Ltd. also had an impact in this segment. The net new money outflow stood at CHF 688 million (2012: minus CHF 805 million). Inflows were achieved in custodian bank fund business. At 31 December 2013, the business segment managed assets under management totalling CHF 25.2 billion (31.12.2012: CHF 24.9 billion), representing a gain of 1.5 percent compared with the previous year.

Interest income after credit loss expense fell to CHF 5.1 million (2012: CHF 7.7 million), net fee and commission income decreased by 5.7 percent to CHF 101.8 million (2012: CHF 108.0 million). Net trading income increased by 8.7 percent to CHF 9.1 million (2012: CHF 8.4 million).

Operating income climbed by 39.6 percent to CHF 173.3 million (2012: CHF 124.1 million). The increase was attributable to an adjustment of the purchase price obligations from acquisitions, which was booked to the Institutional Clients segment. Operating expenses increased by 85.6 percent to CHF 208.9 million (2012: CHF 112.6 million). Personnel expenses declined by 14.2 percent to CHF 39.4 million (2012: CHF 45.9 million). Provisions for the US taxation dispute, as well as goodwill write-downs, the deconsolidation of Jura Trust AG and expenses for the restructuring of the Group had an impact on general and administrative expenses. The Cost-Income-Ratio stood at 85.6 percent (2012: 80.0 %). Headcount was down by 25.6 percent to 166 full-time positions (31.12.2012: 223).

In total, the segment result decreased to minus CHF 35.6 million in 2013 (2012: CHF 11.5 million).

Segment reporting

 

 

 

 

 

in CHF thousands

2013

2012*

+/– %

*

The comparison period was adjusted with regard to the adaption of IAS 19 (revised). See point 2.1 of the accounting principles for details.

Net interest income

10'469

15'026

–30.3

Credit loss (expense) / recovery

–5'400

–7'300

–26.0

Net interest income after credit loss expense

5'069

7'726

–34.4

Net fee and commission income

101'816

107'975

–5.7

Net trading income

9'136

8'407

8.7

Other income

57'283

0

 

Total operating income

173'304

124'108

39.6

Personnel expenses

–39'384

–45'902

–14.2

General and administrative expenses

–116'212

–21'272

446.3

Depreciation and amortisation

–9'853

–4'506

118.7

Services (from) / to segments

–43'467

–40'899

6.3

Total operating expenses

–208'916

–112'579

85.6

Segment profit before tax

–35'612

11'529

 

Performance figures

 

 

 

 

2013

2012

*

Operating expenses (excluding provisions for legal and litigation risks, allowances for non-current assets held for sale and impairment for goodwill) in relation to operating income (excluding credit loss expense and adjustments on purchase price obligations from acquisitions).

**

Operating income excluding credit loss expense relative and excluding adjustments on purchase price obligations from acquisitions to average business volumes.

Net new money (in CHF millions)

–688

–805

Growth of net new money (in percent)

–2.8

–3.2

Cost-Income-Ratio (in percent)*

85.6

80.0

Gross margin (in percent)**

48.4

51.1

Additional information

 

 

 

 

 

 

31.12.2013

31.12.2012

+/– %

Business volumes (in CHF millions)

25'567

25'393

0.7

Assets under management (in CHF millions)

25'228

24'861

1.5

Employees (full time equivalent, in positions)

166

223

–25.6

top of page